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Further to a recent Supreme Court ruling, tens of thousands of small businesses are set to receive insurance claim pay-outs relating to losses during the first national lockdown.

Last year, thousands of small businesses made claims through their business interruption insurance policies for loss of earnings when they had to close due to COVID-19 restrictions. Many insurers refused to pay out, saying that only the most specialist policies had cover for such unprecedented restrictions.

 The case was brought by the Financial Conduct Authority on behalf of policy holders and eight insurance companies took part, including Hiscox and Royal Sun Alliance.

 Richard Leedham, speaking from Hiscox Action Group on behalf of small businesses said, ‘The judgment should be a massive boost to all businesses reeling from a third lockdown who can now demand their claims are paid.’

 Paul Newbold, Partner at Torgersens commented; ‘It’s a massive relief for many of our clients that they will have the ruling as a reference point when contesting their insurance company’s decision. For a number of them, having this pay-out will be the difference between continuing to trade and closing down for good.’

 For full details of the Supreme Court ruling, please click here

About the Author

Paul Newbold Image

Paul Newbold

Partner
After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000. Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.   Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.

To get in touch please e-mail paul.newbold@torgersens.com.

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